Telangana Solar Policy

Preamble

In the last decade, due to the increasing thrust of Governments across the world towards fuel conservation and clean energy, solar power capacity has increased by over 45 times and stood at about 184 GW in 2014. In India, capacity additions in solar power have been even more remarkable. In contrast to a mere 10 MW in 2010, the total solar capacity in India has grown to nearly 3000 MW in 2015. 

The growth rate in solar capacity has been accompanied by rapidly declining cost curves. Solar system costs have come down by nearly 70% in the past five years owing to technological advancements resulting in lower manufacturing and processing costs. In India, solar power prices discovered through competitive bidding have come down by more than 50% in the last four years. 

Across the globe, about 7,200 gigawatts (GW) of capacity needs to be built to keep pace with increasing electricity demand while also replacing existing power plants due to retire by 2040. The strong growth of renewables in many countries raises their share in global power generation to one-third by 2040. 

Government of India (GoI) has set for itself an ambitious target of increasing solar capacity to 100 GW by 2022 and 200 GW by 2050. In order to achieve these targets, GoI is implementing a wide range of regulatory and policy interventions. It is estimated that utility-scale grid parity is expected to be achieved faster than originally estimated and solar power will start aggressively competing with conventional power by 2017. 

Telangana has a vast solar potential with average solar insolation of nearly 5.5 kWh/m2 for more 300 sunshine days. The government of the State of Telangana (GoTS), intends to make use of the positive environment in solar market and push given by GoI for substantially harnessing the solar potential in the State of Telangana. 

This policy of GoTS on solar has provisions which aims at creating an enabling environment for prospective solar power developers to harness substantial quantum of solar power in the best possible manner. This in turn is expected to meet the objective of GoTS to provide competitive, reliable power supply to its consumers and also to ensure a sustainable fuel mix in the long run.

Title

The Policy Shall be known as  “The Telangana Solar Power Policy 2015”

Objectives of Telangana Solar Power Policy 2015”

• Realize and harness the vast solar power potential of the state.
• Contribute to the long-term energy security of the state and promote a sustainable fuel mix in generation through the higher contribution of solar energy.
• To promote solar parks. 
• To promote public as well as private investment in solar power generation. 
• To promote decentralized and distributed generation. 
• To promote grid-connected and off-grid solar applications and effective energy conservation measures. 
• To promote all technologies of harnessing solar energy.

Operative Period of Solar Policy of Telangana

This policy shall come into operation with effect from the date of issue and shall remain applicable for a period of five (5) years. All Solar Projects that are commissioned during the operative period shall be eligible for the incentives declared under this policy, for a period of ten (10) years from the date of commissioning – unless otherwise the period is specifically mentioned.

APPLICABILITY OF THE SOLAR POLICY

This solar policy shall be applicable for the following solar projects set up within the state

1) Solar Power Projects (SPPs) 

a) Grid-connected solar power projects based on both Photo Voltaic (PV) as well as Solar Thermal technologies 

•  Projects set up for the sale of power to TSDISCOMS 
•  Projects set up for the sale of power to third parties within the state 

b) Projects set up for captive generation/group captive generation (including those funded and owned by the developers) 

2) Solar Roof-top Projects (SRPs) ( Grid-connected and off-grid ) – This includes projects which are funded and owned by developers 

3) Off-grid applications 

4) Any other project which is established based on MNRE/GOI Schemes as amended from time to time. 

5) Solar Parks

For availing of benefits under this policy, power generated from any of the above modes has to be consumed within the state. Demand-side management through energy conservation is integral to energy security. Hence, this policy aims not only at promoting grid-connected projects but also to promote off-grid solar projects/applications.

Telangana DISCOM Website: https://www.tssouthernpower.com/